Hi I need help making sure I am taking the correct state tax deduction as I think my tax program is not doing it correctly. Client filed a state extension in 2004 and pd in $803 in April 2005. Client applied overpayment of $631 to 2005. Client did not receive a 2004 1099-G from state. how do I report this for page 1 of the 1040 and schedule A? My thoughts are take 631 of refund on page 1 of 1040 and a deduction of 803 on schedule A. Tax program has $0.00 on page 1 and 631 on schedule A. Any help is appreciated as I have gotten myself totally confused on this. thanks in advance
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Your software is correct
Your software is correct but you need to give it the right information. There was no refund of previously deducted taxes, so nothing goes on Line 10. It is picking up the estimated payment of $631 for 2005. You will have to locate a place to enter the other $172 that was applied to 2004 liability. The Schedule A deduction should total $803.
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